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Inox Wind Ltd.

BSE: 539083 Sector: Engineering
NSE: INOXWIND ISIN Code: INE066P01011
BSE 13:15 | 03 Oct 149.00 1.20
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144.90

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NSE 13:04 | 03 Oct 148.10 0.50
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OPEN 144.90
PREVIOUS CLOSE 147.80
VOLUME 41348
52-Week high 160.40
52-Week low 75.40
P/E
Mkt Cap.(Rs cr) 4,131
Buy Price 148.00
Buy Qty 59.00
Sell Price 148.85
Sell Qty 92.00
OPEN 144.90
CLOSE 147.80
VOLUME 41348
52-Week high 160.40
52-Week low 75.40
P/E
Mkt Cap.(Rs cr) 4,131
Buy Price 148.00
Buy Qty 59.00
Sell Price 148.85
Sell Qty 92.00

Inox Wind Ltd. (INOXWIND) - Auditors Report

Company auditors report

To

The Members of Inox Wind Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Inox Wind Limited ("theCompany") which comprise the balance sheet as at 31st March 2021 and the statementof Profit and Loss statement of changes in equity and statement of cash flows for theyear then ended and notes to the standalone financial statements including a summary ofsignificant accounting policies and other explanatory information (hereinafter referred toas the Standalone Financial Statements).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2021 and loss changes in equity and its cash flows for the year ended onthat date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of theStandalone financial statements under the provisions of the Companies Act 2013 and theRules thereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on StandaloneFinancial Statement.

Emphasis of matter

1. We draw attention to Note 43 of the Statement which describes the management'sassessment of the impact of the outbreak of Covid-19 on property plant & equipmentrevenue trade receivables advances investments and other assets. The managementbelieves that no adjustments are required in the standalone financial statements as thereis no impact in the current financial year. However in view of highly uncertain economicenvironment and its likely effect on future revenues due to Covid-19 a definitiveassessment of the impact on the subsequent years is dependent upon circumstances as theyevolve.

2. We draw attention to Note 44 of the Statement which describes that the Company havea system of obtaining periodic confirmation of balances from various parties (other thandisputed parties). The External Balance Confirmations were sent to banks and parties andcertain party's balances are subject to confirmation / reconciliation. Adjustments if anywill be accounted for on confirmation / reconciliation of the same which in the opinionof the management will not have a material impact.

Our report is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

The Key audit Matters How our audit addressed the key audit matter
Litigation Matters Our audit procedures related to litigation matters include the following:
The Company has certain significant pending legal proceedings with Judicial/Quasi-Judicial for various complex matters with contractor/transporter customer and other parties continuing from earlier years. • Assessed the management's position through discussions with the in-house legal expert and external legal opinions obtained by the Company (where considered necessary) on both the probability of success in the aforesaid cases and the magnitude of any potential loss.
Further the company has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. • Discussed with the management on the development in these litigations during the year ended March 31 2021.
Refer Note 41 of the standalone financial statements. •Rolled out of enquiry letters to the Company's legal counsel and noted the responses received.
Due to complexity involved in these litigation matters management's judgement regarding recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outcomes of the legal cases are determined. •Assessed the responses received from Company's legal counsel by engaging legal experts.
Accordingly it has been considered as a key audit matter. •Assessed the objectivity independence and competence of the Company's legal counsel involved in the process and legal experts engaged by us.
•Reviewed the disclosures made by the Company in the Standalone Financial Statements in this regard.
Alternate audit procedure carried out in light of COVID– 19 outbreaks As a part of alternative audit procedure the Company has made available the following information/ records/ documents/ explanations to us through e-mail and remote secure network of the Company: -
Due to the outbreak of COVID-19 pandemic the consequent lockdown/curfew and travel restrictions imposed by the Government/local administration during the audit period the audit processes could not be carried out physically at the Company's premises. a) Scanned copies of necessary records/documents deeds certificates and the related records made available electronically through e-mail or remote secure network of the Company; and
The statutory audit was conducted via making arrangements to provide requisite documents/ information through electronic medium as an alternative audit procedure. b) By way of enquiries through video conferencing dialogues and discussions over phone e-mails and similar communication channels.
We have identified such alternative audit procedure as a key audit matter It has also been represented by the management that the data and information provided electronically for the purpose of our audit are correct complete reliable and are directly generated from the accounting system of the Company extracted from the records and files without any further manual modifications so as to maintain its integrity authenticity readability and completeness.
In addition based on our review of the various internal audit reports/inspection reports nothing has come to our knowledge that make us believe that such alternate audit procedure would not be adequate.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

TheCompany'sBoardofDirectorsisresponsibleforthepreparation of the other information.The other information comprises the information included in the Management Discussion andAnalysis Board's Report including Annexures to Board's Report Corporate Governance andShareholder's Information (hereinafter referred as "the Reports") but does notinclude the Standalone Financial Statements and our auditor's report thereon. The Reportsare expected to be made available to us after the date of this auditor's report.

Our opinion on the Standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the Standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

Responsibility of Management for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Standalonefinancial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

3. As required by Section 143(3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss statement of changes in equityand the Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount.

(d) In our opinion the aforesaid Standalone financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition other than disclosed in the standalone financial statement (Refer Note No. 41 ofthe standalone financial statement);

ii. The Company had made provision as required under the applicable law or accountingstandard for material foreseeable losses on long-term contracts including derivativecontracts (Refer Note No. 39 of the standalone financial statement); and

iii. There has no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph - 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date.)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given by the management and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that: -

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The management has physically verified the property plant and equipment atreasonable intervals and no material discrepancies were noticed on such verification.

(c) The title deeds of immovable properties are held in the name of the Company. Inrespect of immovable properties taken on lease and disclosed as right of use assets in theStandalone Financials Statements the lease agreements are in the name of the company.

(ii) The management has physically verified the inventory at reasonable intervals andno material discrepancy was noticed on physical verification of stocks by the managementas compared to book records.

(iii) The company has granted unsecured loans to companies covered in the registermaintained under section 189 of the Companies Act 2013.

(a) In our opinion the rate of interest and other terms and conditions of such loansare not prima facie prejudicial to the company's interest.

(b) Based on information provided by the management the loans are repayable on demandand there is no stipulation of schedule repayment of interest accordingly we unable tomake specific comment on the regularity of repayment of principal and interest.

(c) Based on information provided by the management the loans are repayable on demandand hence this paragraph is not applicable.

(iv) In our opinion in respect of loans investments guarantees and securityprovisions of section 185 and 186 of the Companies Act 2013 have been complied with.

(v) The company has not accepted any deposits; hence the paragraph 3(v) of the order isnot applicable.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148 of the Act and are of the opinion that prima facie the prescribed accountsand records have been made and maintained. However we have not nor we are requiredcarried out detailed examination of such accounts and records.

(vii) (a) On the basis of our examination of the records of the company amountsdeducted/accrued in the books of account in respect of undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax cess goods and services tax and any otherstatutory dues have generally been regularly deposited during the year by the company withthe appropriate authorities though there has been delay in a few cases to the extentapplicable to it.

In our opinion no undisputed amounts payable in respect of provident fund income taxsales tax value added tax duty of customs service tax cess goods and service tax andother material statutory dues were in arrears as at 31 March 2021 for a period of morethan six months from the date they became payable except the followings:

Name of the Statue Name of dues Amount (in Lakhs) Period to which the amount relates Due Date Date of Payment
Customs Act 1962 Duty payable against the stock-in-transit 1329.41 FY 2016-17 to FY 2020-21 FY 2016-17 to FY 2020-21 -
Foreign Trade (Development & Custom duty saved on imports against expired 1523.03 FY 2009-10 to FY 2012-13 FY 2015-16 to FY 2018-19 -
Regulation) Act 1992 EPCG license (including interest thereon)
Income Tax Act 1961 Interest on Tax Deducted at Source 105.59 June 2019 to August 2020 - -
Employees State Insurance Act 1948 Employees' State Insurance 1.20 Year 2015-16 and November 2019 to August 2020 15th of every next month -
Labour Welfare Fund Act of respective states Labour Welfare Fund 1.05 April 2018 to August 2020 15th July and 15th January -
Professional Tax Acts of respective states Professional Tax 8.67 April 2018 to August 2020 15th of next month from the end of the quarter -

(b) On the basis of our examination of the books of accounts and records the detailsof the dues of income tax or sales tax or service tax or duty of customs or duty of exciseor value added tax or cess which have not been deposited on account of any dispute are asunder: -

Name of the Statute Nature of dues Amount (In Lakhs) * Period to which the amount relates Forum where dispute is pending
Finance Act 1994 Service tax Demand 1401.63 September'2011 to March'2016 Allahabad High Court
Finance Act 1994 Service tax demand including Penalty 11.19 April 2016 to June 2017 Noida Commissioner of Appeals
Central Sales Tax Act 1956 Sales Tax 577.01 FY 2016-17 Appellate Deputy Commissioner (CT) Tirupati Andhra Pradesh
Andhra Pradesh Tax on Entry of Goods into Local Areas Entry Tax 63.19 FY 2016-17 Andhra Pradesh High Court Amaravathi
Ordinance 2001
Himachal Pradesh Penalty for delayed 70.04 FY 2013-14 Assessing Authority Una
Value Added Tax 2005 payment of tax District
Himachal Pradesh Value Added Tax 2005 Penalty for delayed payment of tax 19.48 FY 2012-13 Assessing Authority Una District
Income Tax Act 1961 Income Tax 3712.33 Assessment year 2014-15 CIT (A) Palampur
Income Tax Act 1961 Income Tax 272.64 Assessment year 2013-14 Income Tax Appellate Tribunal Chandigarh
Income Tax Act 1961 Income Tax u/s 201(1) including interest 373.09 Assessment year 2013-14 Commissioner of Income Tax (Appeals)
Building and Other Construction Workers Act 1996 Labour cess on construction of MP Plant 61.11 2015-16 & 2016-17 -
*Figures after adjustment of amount paid under protest

(viii) On the basis of our examination of the books of accounts and records and in ouropinion there is no default in repayment of loans or borrowings to a financialinstitution bank government or dues to debenture holders.

(ix) In our opinion and according to the explanation and information given to us thecompany did not raise any money by way of initial public offer or further public offer orterm loan and money raised by the debt instrument has been applied for the purpose forwhich they were obtained.

(x) In our opinion no material fraud by the company or on the Company by its officersor employees has been noticed or reported during the course of our audit.

(xi) In our opinion the company has paid/provided for managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Act.

(xii) In our opinion the Company is not a nidhi company. Hence paragraph 3(xii) ofthe Order is not applicable.

(xiii) Based on our examination of the records of the Company and in our opiniontransactions with the related parties are in compliance with sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in theStandalone financial statements as required by the applicable accounting standards.

(xiv) Based on our examination of the records of the Company the Company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year.

(xv) Based on our examination of the records of the Company the Company has notentered into non-cash transactions with directors or persons connected with him.

(xvi) Based on our examination of the records of the Company the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.

ANNEXURE – B TO THE INDEPENDENT AUDITOR'S REPORT

of even date on the standalone financial statements of Inox Wind Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Inox WindLimited ("the Company") as of March 31 2021 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standalonefinancial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Dewan P. N. Chopra & Co.
Chartered Accountants
Firm Regn. No. 000472N
Sandeep Dahiya
Partner
Date: 25 June 2021 Membership No. 505371
Place: New Delhi UDIN: 21505371AAAAON2302

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